Canada announces retaliatory tariffs on long-time ally US

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By Promit Mukherjee

As tensions between the long-standing allies who have the world's longest border escalate to a new low, Trudeau announced at a news conference that he's imposing tariffs on $107 billion worth of US goods. C$30 billion of those tariffs will take effect on Tuesday, the same day as Trump's tariffs, and C$125 billion in tariffs will go into effect in 21 days, he stated.

Trudeau made this announcement shortly after Trump implemented a 25% tariff on imports from Canada and Mexico, and a 10% tariff on goods from China. This move is expected to potentially lead to a trade conflict, which experts warn could decrease global economic activity and restart inflationary pressures.

The President announced that he would be implementing a 10% tariff on all energy imports coming from Canada.

The Canadian leader said tariffs would involve American beer, wine, and bourbon, as well as fruits and fruit juices, including orange juice from Trump's home state of Florida. Canada would also target goods such as clothing, sports equipment, and household appliances.

Trudeau stated that the coming weeks will be challenging for Canadians, and Americans will also be affected by Trump's actions.

"Tariffs against Canada will put your jobs at risk, potentially leading to the shutdown of American auto assembly plants and other manufacturing facilities," Trudeau stated, addressing US citizens during a press conference in Ottawa.

They will increase costs for you, including groceries at the supermarket and gas for your vehicle.

Canada is contemplating non-tariff measures potentially linked to critical minerals, energy procurement, and other partnerships, according to Trudeau.

The approximately 5,600-mile U.S.-Canada border, spanning 9,000 kilometers, facilitates around $2.5 billion in daily trade, particularly in energy and manufacturing, based on Canadian government data from 2023.

In 2023, Canada shipped goods and services worth nearly $550 billion to the U.S., which was more than three-fourths of its total exports. Energy represented 30% of these exports, and manufacturing accounted for approximately 15% to the south.

Exports to the U.S. make up around 17.8% of Canada's total domestic economic output and support over 2.4 million jobs in Canada.

The tariffs are affecting Canada at a time when the country is dealing with a political crisis and a leadership struggle within the Liberal Party led by Trudeau.

Faced with low public support, Trudeau has stated he will leave office after serving nine years once his party selects a new leader. Recent public opinion polls suggest the opposition Conservatives may secure a dominant majority in the next election.

Standing with his ministers of foreign affairs and finance, a serious Trudeau looked back on the years of collaboration between the two nations.

We've stood side by side with you, whether it was on the beaches in Normandy or in the mountains of the Korean Peninsula, in the fields of Flanders or on the streets of Kandahar, during times when you faced the darkest hours. Together, we've forged the most powerful economic, military, and security partnership the world has ever known.

Trudeau urged Canadians to buy Canadian products and take their vacations within Canada instead of U.S. destinations.

We didn't request this situation, but we won't give up or go back on our commitment.

Reporting by Promit Mukherjee; Editing by Caroline Stauffer, Christopher Cushing and William Mallard